The diagram below shows supply and demand curves for bicycles in the domestic Canadian market.Assume that all bicycles are identical.
FIGURE 34- 4
-Refer to Figure 34- 4.Assume there is free trade in bicycles.If the world price of bicycles is $500,domestic consumption is at a price of _ _.
A) 40 000; $500
B) 50 000; $300
C) 30 000; $300
D) 40 000; $400
E) 30 000; $500
Correct Answer:
Verified
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